<h2>Selling vs. Renting Out Your Home When Moving to Assisted or Senior Living</h2><p>Many seniors decide to move to either a smaller, more manageable home or into an <a href="https://www.seniorly.com/assisted-living">assisted living community</a> at some point in their lives. If the home they are currently in is owned in their name, a decision will be made in preparation for this move. Some might assume the best option is to sell the home, but renting out the house is another choice that can be considered. Either way, the decision can be difficult. Here's what you need to know when weighing your options.</p><h2>Your Financial Situation is Unique</h2><p>What works for one person won't work for everyone. Doing research and considering the options can help homeowners decide what is best for their situation. As they decide whether to sell or rent their home, answering these questions can help:</p><ul><li>How much is the home worth?</li><li>What kind of real estate market is the area in right now?</li><li>How much do management companies in the area cost?</li><li>How much could the home bring in monthly as a rental?</li><li>Is there time to take care of a rental property, and if not, who will take care of it?</li><li>Is the home in a good condition to be rented to tenants?</li></ul><p>Consulting with local real estate experts can help homeowners decide whether their home would make a good rental property.</p><h2>Pros and Cons of Holding and Renting</h2><h3>&nbsp;</h3><h3>Pros</h3><p>Renting out a home is an excellent way to produce steady backup income in some cases. Homeowners hoping to mitigate their monthly costs can do so by renting their home. If the mortgage is largely paid off, the majority of the profit will go into the hands of the homeowner.</p><p>Homeowners who are worried about locking themselves into a long-term situation can always sell down the road, once they’ve had more time to consider the options and received advice from professionals. If your local housing market is appreciating, then waiting to sell may be a good option. If market prices are declining in your neighborhood, or currently in favor of buyers, waiting a few more years may significantly decrease the profit one receives from their sale.&nbsp;</p><p>Finally, renting out a home is an excellent way to keep a home in the family. Homeowners who want to keep their home for their children, or who just don't feel ready to give up their home yet, may find that renting is emotionally easier than selling.</p><h3>Cons</h3><p>Not all neighborhoods are appropriate for rental properties. This can be true in costly neighborhoods where the rent would be too high for most potential tenants. In addition, people who plan to rely on their rental home for income could find themselves in a bad position if their home doesn't continue to appreciate as it has in the recent past. This could also be a problem if the rental market starts to decline.</p><p><br>Finally, there's a learning curve to owning and running a rental home. People who have no experience with rental properties may find it stressful to learn some of the ins and outs of property management — even if they hire a property management company to do most of the legwork for them.</p><h2>Pros and Cons of Selling</h2><h3>&nbsp;</h3><h3>Pros</h3><p>Some homeowners want to sell because doing so enables them to cash out right away. With a lump sum in their bank account, the homeowner is able to do what they see fit with their money. In fact, many people who plan to move into a smaller home instead of an assisted living facility might need to sell their old home in order to have <a href="https://www.seniorly.com/assisted-living/articles/understanding-the-cost-of-assisted-living">money for the down payment</a>.</p><p>The real estate market can change over time, and down turns can happen. Selling right away gives the homeowner peace of mind, knowing they sold their house in a good market. This reduces stress and enables the homeowner to focus on other things at an important time in their life.</p><p>Proceeds from a home sale can be used to fund other investments/passive income streams. If a person has more experience and comfort with using mutual funds for monthly income during retirement, they may decide to put some of their profits there and be done with it.</p><h3>Cons</h3><p>While many would consider this to be the safer/less risky route, homeowners who sell their home right away may miss the opportunity to let their home appreciate even more while collecting rental income.</p><h2>Which Option Is Best?</h2><p>Every homeowner is different. When trying to decide whether they should sell or rent their home, the homeowner must take into account their own budget, their ability to care for a rental property, and whether they'll want or need a source of regular income when they move into their new home.</p><p>If you're a homeowner who is thinking about renting or selling your property, one of the ways you can make a decision for yourself is to run the numbers and scenarios with loved ones and a financial advisor. Talking with local investors can help you weigh the pros and cons while also discussing the potential for your home to become a rental property. If your home might not make a good rental property, they might be able to estimate the potential value of the home, and where they might see the real estate market heading in the near future.</p><p>Talk to your financial planner and relatives as you decide what is best for your home. Make these decisions with help from loved ones, to ensure that everyone is on the same page when the decision is made.</p><p>To learn more about transitioning to senior living, read the following articles:</p><ul><li><a href="https://www.seniorly.com/resources/articles/seniorly-moving-guide">Seniorly Moving Guide</a></li><li><a href="https://www.seniorly.com/resources/articles/how-to-help-your-loved-one-downsize-for-a-move-to-assisted-living">Downsizing for a Move to Assisted Living</a></li><li><a href="https://www.seniorly.com/resources/articles/making-the-move-to-a-community">Making the Move to a Senior Living Community</a></li></ul>

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<p>Rebecca Van Wieran reviews content related to real estate for Seniorly. &nbsp; For over 15 years she gained expertise across all sectors of the real estate market, including investment properties, vacation homes, development and new construction. In 2016 she transitioned to a focus on senior housing as a way to give back to her community. Ms. Van Wieran holds a degree from San Diego State University.<br>&nbsp;</p>

Senior Housing Advisor, Haven Senior Investments

<p>Rebecca Van Wieran reviews content related to real estate for Seniorly. &nbsp; For over 15 years she gained expertise across all sectors of the real estate market, including investment properties, vacation homes, development and new construction. In 2016 she transitioned to a focus on senior housing as a way to give back to her community. Ms. Van Wieran holds a degree from San Diego State University.</p>

Trying to understand how to use your home as an asset to cover the cost of senior living. Seniorly breaks down the pros and cons of selling vs renting your home to fund senior living.

Selling vs Renting Your Home

<p>When your elderly loved one decides to make the move to assisted living, it’s a major step that comes with many positive benefits. But what to do about a lifetime of cherished accumulated possessions that no longer fit an elderly loved one’s new living space or lifestyle?</p><h2><strong>Learning to let go</strong></h2><p>Even when a transition to <a href="https://www.seniorly.com/resources/articles/the-assisted-living-experience">assisted living</a> for an elderly loved one is something they welcome, it is important to be respectful about the process. Moving to a retirement community or to an assisted living residence is a life change that ranks high on the <a href="https://www.stress.org/holmes-rahe-stress-inventory" target="_blank" rel="noopener noreferrer">life stress scale</a>. If other significant life stressors such as death of a spouse or major illness have also occurred, it can make even the most easy-going person more emotional. Loss of mobility requiring help from caregivers and/or loss of memory necessitating memory care can make an elderly loved one feel anxious. They may feel that they are losing control of so much that they may want to cling more fiercely to possessions they may no longer need.</p><p>Your challenge in helping them, according to Seniorly experts, is to be a good steward to their belongings and respectful of the deep emotional meaning items may have for them. At the same time, you need to be practical about the need to downsize their possessions to what will be useful for them in assisted living, so you can empty the family home. This is especially important if the home has to be sold to provide resources for their future care needs.</p><h2><strong>Decluttering vs. cherishing possessions</strong></h2><p>Current trends advocate for &nbsp;decluttering and getting rid of things, the idea being to cherish memories, not things. However, keep in mind this is a modern movement and those of a different era may feel differently about cherished belongings. &nbsp;For someone downsizing from their home, keeping certain items may be important to the transition. For example, a memory care resident may no longer be able to read their cherished books the way they once did, but the presence of their favorite books in a bookcase in their room may provide reassurance and continuity.&nbsp; Similarly, an &nbsp;loved one in a assisted living may enjoy having keepsakes near that help prompt happy memories. You can always get rid of things, but once they are gone ,they are gone forever. So if possible, take it slow and try to determine what is important.</p><p>Family photo albums provide another important source of continuity. Although you may want to digitize them to preserve them for posterity, having the photo albums available for your elderly loved one when they move to a retirement community can provide a helpful transitional link. Looking through the photo albums when you visit the assisted living community can give you both a pleasant meaningful activity to do together.</p><h2><strong>Helpful ways to downsize possessions</strong></h2><p>No matter how gentle and understanding we are about the sentimental value of many of an elderly loved one’s lifetime of possessions, there is no doubt that much of it will have to go when they move into assisted living.&nbsp;</p><p>Keeping heirlooms and other beloved items in the family can help an elderly loved one feel better about letting them go.</p><p>Give your elderly loved one a package of round stickers they can use to write a family member's name on to keep track of items they would like that family member to have.</p><ul><li>Help your elderly loved one place all of the items they wish to give away on a table. Use printed photos of large pieces. Have family members draw straws to determine who goes first etc. Family members take turns walking around the table and choosing things until everything is claimed.</li></ul><p>After family members have had a chance to choose, ask your loved one if there are any items they would like to give to close friends or neighbors. Then help them choose a charity and call to donate extra items.</p><p>If it seems too much to deal with at present, there are many companies that specialize in&nbsp;<a href="https://gentletransitions.com/">senior moving</a>,&nbsp;<a href="https://www.caringtransitions.com/">estate sales</a> and downsizing services. If time doesn’t permit you can also rent a storage unit so you can sell or donate items at a later date once your loved one is happily settled in their new assisted living community.</p>

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Downsizing can be a stressful process for seniors. Seniorly can help by providing tips to make the process both emotionally and physically easier.

Downsizing Tips for Seniors

<p>Selling your home might seem like a simple retirement project when you first consider it. However, once it’s time to actually start the process, the required steps can sometimes seem overwhelming. Here are seven tips for seniors selling their homes, to help make your transition to a new home or senior living community easier:</p><ul><li>Get Sound Financial Advice</li><li>Create a Timeline</li><li>Hire the Right Real Estate Professional</li><li>Sort and Declutter</li><li>Repair and Refresh</li><li>Let the Pros Pack and Move</li><li>Be Patient</li></ul><h2>Get Sound Financial Advice</h2><p>Should you sell? Before putting your home on the market, get tax and financial advice. If you sell at a loss, you might not be able to deduct the loss from income taxes. In general, when you sell for a gain, you can exclude a specified amount of the gain on your return.&nbsp;<a href="https://www.irs.gov/newsroom/important-tax-reminders-for-people-selling-a-home">Tax rules</a>&nbsp;can be tricky when it comes to homes, so consider getting an opinion from a licensed professional before selling. To estimate how much you’ll net, also consider transactional fees. These vary per locale but are costs such as escrow and title fees, transfer taxes, commissions, and inspection fees. You can ask your real estate agent to draft an Estimated Closing Statement before listing. Lastly, estimate your future financial needs as closely as possible. With all of this in mind, you can make the best selling decision in light of your estimated circumstances.</p><h2>Create a Timeline</h2><p>It’s a bridge between leaving your current home and the one where you’ll spend your upcoming retirement years. The&nbsp;<a href="https://www.realtor.com/advice/sell/home-selling-timeline-how-long-it-takes-to-sell-a-house/">best timeline</a> shows major transition milestones with realistic flexibility built into the dates. To stay organized, keep your timeline in a special folder along with all your notes, lists, and contact information related to the sale of your home. Reviewing it regularly even before you list your home should alert you to any potential pitfalls and signal when to ask for help from friends or family.</p><h2>Hire the Right Real Estate Professional</h2><p>Advice abounds on how to find this person. Some seniors prefer to rely on the real estate agent who has sold the most properties in their neighborhood. Others seek those most often recommended by friends. Some communities have agents who specialize in working with seniors. Look for a Senior Real Estate Specialist® (SRES®), which is a special designation for realtors who have been trained and educated on working with real estate transactions for older adults.&nbsp; Realtors with SRES® designation have completed a course and in some states may be required to maintain continuing education credits. Whichever approach you prefer, be sure to interview at least several agents. The right professional will ask questions about your future goals. He or she will provide a realistic listing price and answer all your questions promptly before asking you to sign a listing agreement.</p><h2>Sort and Declutter</h2><p>Downsizing a home or moving cross-country ignites the need to deal with a lifetime of possessions. Using a timeline makes the process of selling, donating, discarding, or storing less daunting. Examining a floor plan of your next residence will show you how much furniture you can fit into it. Before opening your doors to prospective buyers, keep in mind that you’re showing your home, not your possessions. Since potential buyers will attempt to picture their possessions, not yours, in the house, put excess items in storage or ask a friend to stash them. Now is the perfect time to pass that antique armoire to a family member if there’s no room for it in your new home. Many seniors find it easiest to start on the outside and remove yard debris and distracting décor. Inside, systematically go through each room, closet, and other storage area and mark it off your timeline as you finish. Using stickers in different colors for donating, gifting, storing, and keeping makes the process go much more quickly. Sticking to a specific time to declutter each day helps prevent getting sidetracked or overwhelmed.</p><h2>Repair and Refresh</h2><p>Now's the time to repair dripping faucets and sticking doors. Since buyers prefer homes in move-in condition, consider replacing that aging water heater and stained carpet. Consider painting walls that don't look as good as they used to. Trim unruly shrubs and perform a residential facelift with power washing or painting. Since you’ll want to maintain this “buy me” look, keep tools such as lawn mowers easily accessible. This is the perfect time to invite friends and family to stop by, wield a paintbrush, and enjoy fare from the grill while you reminisce.</p><h2>Let the Pros Pack and Move</h2><p>Professional movers are experts and you may be able to find a&nbsp;<a href="https://www.nasmm.org/">Senior Move Manager</a>® in your area. Even if you're moving to an<a href="https://www.seniorly.com/assisted-living"> assisted living facility near you</a>, put a lid on anxiety by letting them pack and move the items headed for your new home. The process will be faster than a do-it-yourself move and will probably result in less damage. Be sure to pack enough essentials for your first day or so in your new home. Take clothes, dishes, linens, a flashlight, and a first-aid kit with you to lower the stress level upon arrival.</p><h2>Be Patient</h2><p>The process of listing, showing, and closing on a residence you want to sell can be difficult&nbsp;<a href="https://www.thebalance.com/how-long-does-it-take-to-sell-a-house-1799050">and time-consuming</a>, particularly for seniors who have spent decades in their homes. One of our best tips for seniors selling their homes is to be patient with yourself and those helping you. Keep in mind that your goal is simplifying your life. It’s moving day: your last box is headed up the ramp of the moving van. You’ve sold your home with a lot less stress than you envisioned. Be sure to give yourself several pats on the back, then take the rest of the day off.</p><p><br>This article was written by <a href="https://www.jupiterhomesales.com/agents.php" target="_blank" rel="noopener noreferrer">Dylan Snyder </a>of the Snyder Real Estate Group in Florida.</p>

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Get seven tips for seniors selling their homes from Seniorly. Explore ways to make the home-selling process smoother for you or your elderly loved ones.

Rebecca Van Wieren

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Selling vs Renting Your Home

Downsizing Tips for Seniors

7 Tips for Seniors Selling Their Homes

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